eBay stock rallies to 6-year high

Shares of eBay rallied nearly 10% Wednesday, hitting their highest level since January 2006, after the company topped earnings and sales expectations for the second quarter.

eBay (EBAY) CEO John Donahoe credited the solid performance to the successful turnaround of the company's e-commerce business, called eBay Marketplaces.

Revenue for e-commerce business jumped 9% from a year earlier to a record high of $1.8 billion.

eBay's PayPal unit also continued to post strong results, with revenue rising 26% year-over-year, as the number of active registered users rose 13%

The company's mobile strategy helped eBay book strong results.

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"Mobile continues to be a game changer," said Donahoe, "We now expect eBay and PayPal mobile to each transact $10 billion in volume in 2012 -- that's more than double 2011, a staggering surge in mobile shopping and payments on devices that did not exist just a few years ago. Retail is at an inflection point, and we are helping to reshape how people around the world shop and pay."

For example, the company said it is working major U.S. retailers, including Abercrombie & Fitch (ANF), to allow shoppers to use their mobile phone number or PayPal payment card and PIN to pay for purchases.

If $AMZN doesn't think they have competition coming,thk again just look at $EBAY and their new market focus.Tax increases also hurting $AMZN

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.